Global PE Firms Bet Big on South Korea's K-Beauty Sector

Global private equity firms are ramping up investments in South Korea’s beauty sector as global demand for K-beauty continues to rise.

Unlike earlier deals focused on fast-scaling consumer brands, current transactions highlight a shift toward more stable supply chain and service infrastructure plays. In one of the sector’s biggest moves, KKR acquired Samhwa, a leading Seoul-based manufacturer of cosmetic containers and pumps, for ₩733 billion (US$528 million) from TPG Capital Asia. Samhwa supplies packaging to multinational giants such as L’Oreal, Estee Lauder, Chanel, and LVMH, with 60 percent of revenue generated from global brands. This deal underscores private equity’s growing preference for companies with predictable cash flows and diversified client bases.

Key Highlights

• KKR acquired packaging maker Samhwa for $528M, serving global beauty giants
• Blackstone invested in Juno Hair, Korea’s largest salon chain
• K-beauty market matures with exports hitting $5.5B in H1 2025

Meanwhile, Blackstone invested in Juno Hair, South Korea’s largest salon chain with over 180 locations across Korea, Singapore, Vietnam, and the Philippines. This marks another pivot away from volatile brand acquisitions to service-oriented businesses with recurring revenue models.

This approach contrasts sharply with past blockbuster deals such as Bain Capital and Goldman Sachs’ $263 million acquisition of Carver Korea in 2016, later sold to Unilever for $1.6 billion in just one year — the most profitable private equity deal in Korean history.

Also Read: Virtue Asia Helps Sephora Redefine Beauty with New Campaign

With Korean cosmetics exports reaching a record $5.5 billion in H1 2025, up 14.8 percent year-on-year, the sector remains robust but is entering a more mature phase. Current valuations, like Samhwa’s $528 million buyout, reflect more normalized returns compared to the explosive gains of the past.